However, the England international only recently agreed a two-year extension to his current Liverpool contract earlier this month.
Related ArticlesKuyt: Liverpool need miracleAncelotti speaking Chelsea's languagePapers: Tevez looks to leave and United target DodoHicks and Gillett sitting tight as future unfoldsArshavin's Anfield duelLiverpool 4 Arsenal 4And despite Milan's attempts to restore themselves to the summit of Italian and European football by embarking on a major spending spree this summer, Ancelotti admits that Gerrard is out of the Rossonerri's reach.
Ancelotti told Hungarian sports daily Nemzeti Sport: "I think Steven Gerrard is an outstanding player but I doubt that he'd leave Liverpool.
"We're eyeing many players but it would be too soon to mention any names before the end of the season."
Gerrard, currently sidelined with a groin injury that is expected to keep him out of Liverpool's trip to Hull on Saturday, insists that the club can still win the title this season.
Tuesday's 4-4 draw at home to Arsenal, followed by Manchester United's 2-0 victory over Portsmouth on Wednesday, has left Rafael Benitez's team three points adrift of United, having played a game more.
But Gerrard remains hopeful that United can be caught between now and the final game of the season on May 24.
Gerrard said: "Manchester United have a fantastic team and you look at their run-in, look to see where they are going to drop points - it would have been very difficult if we'd lost the game against Arsenal, but I think the point we got could be big.
"It's not like us to concede that many goals, but we'll have to wait and see how big that point could be for us.
"Now we need United to get beaten, which is difficult to do because they're a good team. But there are still twists and turns left."